In both the investment and real estate worlds we talk a lot about assets. Usually, it’s fairly easy to attach a dollar figure to assets and numbers that fit neatly into the cells of an Excel spreadsheet. The most important asset we have in our lives, however, isn’t so easily plugged into cut and dry math calculations – […]
Hard Money Borrowers Often Hear the Word “NO”!
No one likes to hear “no” when asking for something they want or need. It’s especially painful when “no” comes after applying for a mortgage loan to buy a personal home or investment property. However, with more than 19 years in the lending business as both a conventional and a hard money lender in California, I have […]
Who Are the Best Borrowers?
I am often asked this question by new prospective hard money lenders. Borrowers come in all shapes and sizes, and most of them cannot obtain a mortgage loan at their local bank. These borrowers range from first-time homebuyers, developers, speculators, to real estate investors. For private mortgage lending, you will probably do best by loaning […]
Credit Scores and What They Mean
A credit score is simply a number calculated based on the borrower’s credit history. The borrower gets points based on information in his or her credit report. These points are compared to those of other similar consumers and help the lending agency identify the risk of loaning money to the person or entity. Based on […]
CREDIT AND HARD MONEY
Perhaps the most common reason for hard money requests comes from borrowers with credit issues preventing them from getting a mortgage at their local bank. Sometimes, an FHA or VA loan may work, as it is more lenient in its credit standards, but too often borrowers do not meet those guidelines, either. Before the advent […]
If It’s So Expensive, Why Use It?
Hard money has its time and place for borrowers who cannot get traditional financing when they need it. And while it is a typically more expensive route, sometimes losing a great investment opportunity or home in a wonderful area can be costlier. So, why use this pricey avenue? Speed: In most non-owner or investment property […]
TRID Regs Bring Changes to Hard Money Deals
Raz writes that “the new integrated-disclosure rule known as TRID is excellent for consumers but also laborious for lenders. It will consequently have some short-term negative impact on lenders, including some hard money lenders — although in the longer term, it promises to offer benefits as well. The determination of whether a hard money loan […]
ARE WE FACING ANOTHER REAL ESTATE BUBBLE?
Home prices have continued their steady ascent this summer nationally, but there’s no reason to believe a collapse in prices is on the horizon, per many economists. Home prices have continued their steady ascent this summer nationally, but there’s no reason to believe a collapse in prices is on the horizon, per many economists. On […]
Investing in Real Estate
Investing in real estate is essentially one of the smartest and safest strategies to promote wealth building. With the proper foundation and knowledge, investing in real estate – or in this case,private lending – can prove to be highly lucrative for anyone. Of particular interest, however, is what an investor can do with the money they […]
Am I Candidate for a Hard Money Loan?
If you have strong equity in or a substantial down payment for a piece of real estate yet the banks decline you, you may be an ideal candidate for a hard money loan. Unlike mortgage banks or agencies like Fannie Mae or Freddie Mac, which have credit FICO score minimums, income to debt ratios, job […]